User Account

All Pages

What is the payback period of investment

Assignment Help Finance Basics
Reference no: EM132386391

Company Z purchases an asset for $12,000. As a result of the investment, the company expects the following after-tax cash flows:

Year 1 $2,000

Year 2 $2,000

Year 3 $4,000

Year 4 $6,000

Year 5 $6,000

What is the payback period of this investment?

3.67 years

3 years

3.4 years

3.2 years

Reference no: EM132386391

Questions Cloud

What entry should chipotle make on the due day : Keith paid Chipotle for merchandise with a $40,000, 3-month, 8% note dated March 1st. If Keith pays the note at the due day.
What type of error is more likely to be made : If a researcher decides to use the .01 level of significance rather than using the more conventional .05 level of significance.
Calculate what is the amount of bad debt expense : Upon completing an aging analysis of accounts receivable, the accountant for Rosco Works prepared an aging of accounts receivable and estimated.
Children who learn to read using phonics : A researcher hypothesizes that children who learn to read using phonics will read better than those not taught in this manner. Identify H0 and Ha.
What is the payback period of investment : Company Z purchases an asset for $12,000. As a result of the investment, the company expects the following after-tax cash flows:
What is the amount of bad debt expense : At year-end, Chief Company has a balance of $10,000 in accounts receivable, of which $9,000 is within 30 days and $1,000 is over 30 days.
What equal annual deposits must you make each year : What equal annual deposits must you make each year to reach your retirement goal?
What is the present value of the stream of payments : If you had the money now, you could invest it in an account with a quoted annual interest rate of 8% with monthly compounding of interest.
Explain plain terms the concept of monetary policy : Briefly explaining in plain terms the concept of monetary policy, also indicate who in the United States oversees and implements monetary policy.

Reviews

Write a Review

Finance Basics Questions & Answers

  Find the yield to maturity of the bond in given problem

A 6.1% coupon bearing bond pays interest semi-annually and has a maturity of 5 years. If the current price of the bond is $1,140.56.

  The required return on this low-risk stock is 900 what is

nachman industries just paid a dividend of d0 1.32. analysts expect the companys dividend to grow by 30 this year by

  Describe any potential ethical issues that could arise

what type of architecture new payroll application should use and why. Explain any potential ethical issues that could arise in conncetion with new architecture.

  What was the investors rate of return

An investor buys a ten-year, 7% coupon bond for $1,050, holds it for one year and then sells it for $1,040. What was the investor's rate of return?

  What does this problem tell up about the interset rate risk

The Faulk Corp. has a 6 percent coupon bond outstanding. The Gonal Company has a 14 percent bond outstanding. Both bonds have 8 years to maturity, make semiannual payments, and have a YTM of 10%.

  The banking system in china. how safe is this system?

The banking system in China. How safe is this system? Any recent banking crisis in China?

  What should the arbitrageur do

The price of gold is currently $1,400 per ounce. The forward price for delivery in one year is $1,500. An arbitrageur can borrow money at 4% per annum.

  How much company would report a net cash

Two years ago, your company bought $40,000 in bonds from another company. This month, it sold half of those bonds for $20,640 and lent $1,000.

  A project has an initial outla of 4000 it has a single

a project has an initial outla of 4000. it has a singlepayoff at the end of the year 4 of 6996.46. what is the internal

  Define the changing interest rates and the rates of return

How has online banking changed the way consumers select and use various financial services?

  Charges of age discrimination

What types of policies might lead to charges of age discrimination, and how can they be changed to eliminate these problems?

  Determining the bond valuation

The price of the Pybus bonds if they receive an A rating will be? (round in nearest cent)

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd